This week, I found some interesting articles in the web from Berkshire Hathaway annual shareholder meeting.
In one of the articles, Mr Warren Buffet was explaining why he sold his Walmart shares, picturing a very drammatic situation for normal retailers. He is mentioning that they will exit any investment in department-store business.
I clearly see a fierce competition that is killing many traditional retailers, but I don’t agree with the vision we won’t have retailers in 10 years from now.
Amazon will be bigger and stronger, but people will still need to go out and do some normal shopping. People like to go out and try new things.
some food for thoughts:
- rarely when I purchase my grocery online, I receive the right tomatoes and fruits (they just pick the first one on the shelves), and the same for meat and fish
- People like to visit some shops, get ideas, get recommendations.
- Tomorrow when robots will do our normal jobs we will have more time to spend. I don’t expect people staying all day long in their homes.
- Whenever you travel, you don’t buy from Internet, you want to visit some shops and buy something traditional that you might have seen at the beach
This terrible crisis in the retail sector is no different from many others, people see the end of the world and nothing will be like it is today. Things will be different but the best companies will adapt and will respond to customer needs.
It’s picking those companies that you will make a good investment and a fantastic return.
Those could be Target, Walmart, Nordstrom, Khol’s… I don’t know yet but I am confident few of them will get much bigger after this crisis. Many disappearing companies will leave big space for the strongest ones.